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Thursday, June 30, 2016

We buy and sell Neteller only,
because it is regulated and dependable. Since Neteller is authorized by the
Financial Conduct Authority in the UK, they maintain the highest standards
across their business and services around the world. Their industry-leading
physical and electronic security measures and Anti-Money Laundering protocols
ensure their members are protected as far as possible from identity theft and
fraud.

Unlike regulated e-currencies,
non-regulated e-currencies, in spite of wide acceptance, can give people unexpected
heartaches. Take examples of e-bullion, e-gold, Liberty Reserve, Egopay etc.
Many regulated e-currencies put restrictions on Nigerians, but Neteller is an
exception. Neteller is bound to become more and more popular

If you want to buy or sell any other
e-currencies apart from Neteller, you have to go somewhere else.

“If you can trade like a hedge fund without investing in
one, you can replicate their big wins without having to pay their huge fees.”– James Altucher

In the first part of the article in this series, I mentioned
that Mr. Caleb (a former trainee), who’s found his edge in his market, was
interviewed. He’s interesting facts to reveal about trading, plus how he makes
his money from the markets. Here we go:

Analyst75: What motivated you to get trained for trading in the first place?

Caleb: I was interested in trading
because of its benefits. When I was introduced to a seminar, I attended it with
a friend. I’ve to say that the seminar was a disaster to me, because all they
could say was “you can make so-so amount of money,” “you can become financially
free,” and all those marketing stuff. They didn’t show how that could be done,
except to sell something they believed would work. Such was most of the
seminars – useless. So I decided to explore other options. When I came across
my former coach, I was encouraged again, but for a one-on-one training at that
time.

Analyst75: What did you learn during the training?

Caleb: The training was an eye
opener, because I was taught how the markets really work, plus trading
principles that are useful. It was different than the get-rich-quickly stuff
that sells you something and goes away. After the training, I practiced more
and more and more. With some viable modification, here I am.

Analyst75: How do you determine when to buy and when to sell?

Caleb: I’m a systematic trader,
with a large amount of discretion, however. I don’t trade flat markets, which
means my candidates are usually trending markets. I follow the trend, using
MACD and EMA to determine a major bias on a particular market, especially in
the medium-term. I prefer hourly charts because they aren’t too big or too
small in terms of time horizon. Then I use economic news/fundamental figures to
pinpoint entry points. I trade mostly news that pushes the market in the
direction of the dominant bias, for this comes with higher accuracy. Needless
to say, some news releases don’t move the markets: I simply ignore those. On
rare occasions, I trade news that pushes the market massively against the
trend. This is where discretion comes in. In some cases, price action will
reveal that an existing trend has reached maturity, and is getting tired.

Analyst75: What do you stops and targets look like?

Caleb: My stops range from 30 to
100 pips. I don’t set take profits unless I’ll be away from the markets for
several days. In that case, my stop would be a minimum of 200 pips. Sometimes,
I sustain small losses for weeks, but I’m happy as long as the losses are kept
small. Huge moves in my favor often wipe those small losses away, giving me
decent profits over time.

Analyst75: How long do you hold onto an open trade?

Caleb: I hold onto a trade as long
as the market goes in my favor. A trend may last longer than most people think
and bigger profits are present in sustained trending movements. When a trade
fails to develop in the way I previously think, I’m quickly out! Sometimes, I
don’t even wait for my stop to be hit before I quit a trade. This doesn’t mean
I exit a trade on noises only, as mere noises would cause transient movements
against my direction, this is where a little discretion helps.

Analyst75: How do you feel when a trade goes against you?

Caleb: It’s merely one of those
normal things – as long as you keep the losses small. I see losses as part of
business. Most business would have periods of losses, slow growth, etc. Why
should trading be different? A losing streak is a good indicator that a winning
streak is around the corner; and that helps me keep my chin up. I know that
when I lose, some winning trades would soon materialize.

Analyst75: How do you feel when you win a trade?

Caleb: Normally I feel great. I
feel satisfied whenever I’m in a winning streak. That’s part of the beauty of
trading.

Analyst75: What are your favorite pairs?

Caleb: EURUSD, AUDUSD and USDJPY.
To me, they’re easily predictable.

Analyst75: Do you see yourself teaching others to become successful at trading?

Caleb: Nope. I’m not good at
teaching/coaching, and I don’t think I’ll ever become a coach. If there’s anybody
who wants to learn trading, they’ll have to find a good coach to show them the
way.

Analyst75: Do you believe in trading robots?

Caleb: Robots are good, but a
little discretion helps good traders. Robots follow strict rules, which may
bring disaster when the market conditions are at variance with the rules. Most
trading systems are rubbish, and when programmed, they produce useless robots
which might accelerate your bankruptcy. Artificial intelligence is garbage in,
garbage out.

Analyst75: Do you think you might change your trading method in future, applying
some flexibility?

Caleb: No-one can become a master
trader overnight. Anyone can learn how to buy and sell, but trading mastery
takes time. In a few days, you can learn driving, but that doesn’t make you an
experienced driver. A person who’s just learned how to drive might not be able
to handle some challenges that a driver has to face, like driving in all
weather conditions. Trading is no different. If I discover that a particular
rule might improve my trading results, I’d first try it in a simulated mode for
4 – 6 months. If the results are satisfactory, I make the rule part of my
trading strategy.

Analyst75: Most members of the public fear trading. They even discourage others
from trading. What do you think about this issue?

Caleb: People fear the unknown.
Yes, they’re scared of what they don’t know, including what they think they
know, but which they don’t really know. A novice may discourage other novices
because they think they know somebody who lost their money in the markets, and
so the losses in other areas of life would be an exception or a normal thing to
them. Only a loss in trading is what they think is abnormal. I think the right
mindset is to determine to succeed where most others fail, like trading.

Analyst75: How do you combine your day job with trading?

Caleb: I trade mostly in the
evenings when I get back home from work: before I sleep. I spend less than 5
hours per week on trading. So, it’s pretty easy for me to trade while keeping
my day job.

Analyst75: As far as trading is concerned, what’s your plan for the future?

Caleb: I want to be the best
trader I can be. I want to be the best trader in my country. I like the joy of
financial freedom trading brings and I’d like to live a quiet life in a natural
environment, away from the city, where there’s too much noise. I’ll soon
abandon my day job to become a full-time trader, living the kind of life I
really want.

Analyst75: Would you like one of your children to be a trader in future?

Caleb: I believe each child is
unique, created by the Providence to fulfill a specific destiny. This might not
be trading in most cases. I’d be happy if a child of mine becomes a trader, but
if they choose another course of life, I’d be happy too as long as they don’t
have “I beg to apply” mentality. Becoming a trader isn’t by force; it’s by
choice, although it’s a good vehicle for financial freedom. One thing I’ll
surely do is that, I’ll inculcate the spirit of self-reliance and
self-dependence into them as early as possible. Our parents don’t show us the
way to be self-sufficient. They make a big mistake just by telling us to go to
school and look for jobs, which to me, isn’t the best way of life. It’s a
horrendous thing to be at the mercy of a boss. There’s a vast difference
between living and existing. You’ll need to choose for yourself.

Analyst 75: Do you have any advice for traders?

Caleb: When it comes to Forex
trading, patience is a virtue. Patience pays a lot. Traders should be
optimistic and look forward to better trading results, even in the face of a
current challenge. When you’re using a good system and facing a temporary
period of loss, always look forward to a period of profit, which is around the
corner.

Analyst 75: Thank you Mr. Caleb, for this great interview.

Conclusion:

This interview is concluded with a poem-like advice from an
astute female trader:

I See You

I see you.

I see your focus, and I can
picture what this will mean for your trading future.

I see your trading scars, and I
know that some of them came close to breaking your heart.

I see your hope for the future,
and I’m in awe of your potential.

I see your struggle, and I know
that, like a bird pecking out of an egg, the struggle will make you strong.

I see your choices, and I
recognise how you are honouring your vision.

I see your joy as you
courageously take one more step and learn a bit more about the markets.

I see your deep desire to do
more, be more and have more.

I see a trader.

I see you.

Let's make 2016 a terrific year
of triumph.” - Louise Bedford (Source: Tradinggame.com.au)

Tuesday, June 28, 2016

Cloudbou shares (LSE:CBUY) are now in a major downtrend, which is
expected to continue. Price went downwards in January/February 2016, and went
upwards in March/April. Nonetheless, price has been coming down since May till
now.

The ADX period 14 is at the level 60, showing a strong bearish
momentum in the market. The DM- is clearly above the DM+, meaning that the
bears are reigning right now. The MACD default parameters, has its histogram
and signal lines below the zero line. There is a Bearish Confirmation Pattern
in the daily chart, and further downward movement is possible.

Cloudbuy may reach the support lines 4.000, 3.500 and 3.000 within
the next few months.

This forecast is ended by the quote below:

“Trading is about managing being uncomfortable. This
discomfort can come at any time in the trading process and the trader has to
work out where in the trading process they are most able to manage their
discomfort. What is interesting is that traders actually seek to manage their
comfort which inevitably means they do nothing yet paradoxically they encounter
discomfort when they realise they have missed out. Irrespective of your
approach trading involves discomfort at some point in the trading process.”
– Chris Tate (Source: Tradinggame.com.au)

Taylor Wimpey stock (LSE:TW.) is a falling knife, having dropped
like a stone last week. The market has been volatile since then…. And recovery
is possible.

Yes, the market is really a falling knife. Price is below the EMA
21, and the Williams’ % Range period 20 is in the oversold territory. Prior to
the time, the market had been largely consolidating, for the most part of this
year.

Taylor Wimpey has run against adamant accumulation territories, and
a rally is bound to happen. It is possible that price would trend further
downwards: but a rally would come around soon.

A buy signal would be formed once the Williams’ Range period 20 is
in the overbought territory and the price has gone above the EMA 21 again. That
would happen this year, though it might take some time, which is good news for
those who know how to catch falling knives.

This forecast is ended by the quote below:

“There's an
advantage to using a more methodical approach: continue to search for solid,
high probability trade setups, outline detailed trading plans, and trade
prudently with unwavering discipline.”– Joe Ross

On Friday, June 24,
2016, the EU/JPY experienced its strongest bearish movement this year. Price
dropped by 1200 pips, reaching the low of 109.57. Price later performed a 450-pip
bullish correction, later closing at 113.48 that Friday. The outlook on JPY
pairs is bearish, and further movement to the south is expected this week,
which would be at least. 300 pips on EUR/JPY.

EUR/USD: Last
Friday, this pair underwent its largest single-day pull-down this year, and
this has resulted in a Bearish Confirmation Pattern in the chart. Since the
outlook on the EUR/USD is bearish this week, further downward movement could be
seen, which means the support lines at 1.1050 and 1.0000 would be reached this
week. Those support lines were tested last week.

USD/CHF: As it was forecast last
Friday, this market, which was previously flat as a result of inertia, was
forced upwards by a strong bearish pressure on the EURUSD. Price went upwards by
250 pips, before getting corrected by 100 pips. The movement on this market
this week would be largely determined by whatever happens to the EUR/USD. A
continuous southward journey on the EUR/USD could result in a sustained rally
on the USD/CHF.

GBP/USD: On Friday, June 24,
2016, the GBP/USD experienced its strongest bearish movement in recent years.
Price dropped by 1700 pips, reaching the low of 1.3230. Price later performed a
500-pip bullish correction, later closing at 1.3682 that Friday. The outlook on
GBP pairs is bearish, and further movement to the south is expected this week,
which would be at least. 400 pips on GBP/USD.

USD/JPY: Britain’s decision to
leave the EU had bearish effects on JPY pairs, and that was exactly what
brought about a bearish momentum on USDJPY, which was consolidating in the
context of a downtrend prior to that time. What happened to this market on
Friday simply brought more emphasis on the long-term bearish trend, which is
also visible on the daily and weekly charts.
The 700-pip decline that was witnessed on Friday would bring about a
rally within the next several trading days, because important demand zones had
been challenged.

EUR/JPY: On Friday, June 24,
2016, the EU/JPY experienced its strongest bearish movement this year. Price
dropped by 1200 pips, reaching the low of 109.57. Price later performed a
450-pip bullish correction, later closing at 113.48 that Friday. The outlook on
JPY pairs is bearish, and further movement to the south is expected this week,
which would be at least. 300 pips on EUR/JPY.

Saturday, June 25, 2016

This
pair tested the resistance line at 1.1400, and went above it briefly. Price
could not stay above that resistance line: It tumbled by 500 pips before a
200-pip bullish correction occurred on Friday. The bias is bearish, and further
bearish movement is possible, but it may not be more than 300 pips downwards.
Price might also journey upwards this week, owing to the fact that the extreme
bearish movement that occurred on Friday could bring opportunities to buy.

USDCHF

Dominant bias: Bullish

USDCHF
was essentially a flat market in the context of a downtrend, before the strong
bearish movement on EURUSD forced it to break out upwards. Price moved upwards
250 pips, reaching the resistance level at 0.9800, and the got corrected by 100
pips. For the bias to remain bullish, EURUSD needs to continue moving south;
because the events affecting EURUSD are what would determine the movement of
USDCHF (which is being currently affected by inertia on its own).

GBPUSD

Dominant
bias: Bearish

On Friday, June 24, 2016, Cable experienced its strongest bearish
movement in recent years. Price dropped by 1700 pips, reaching the low of
1.3230. Price later performed a 500-pip bullish correction, later closing at 1.3682
that Friday. Normally, the outlook on GBP pairs is bearish, and continuous selling
pressure on Cable is a possibility. However, the extreme market situation would
also bring some opportunities to go long, for those who are very good at catching
falling knives. The markets could open with gaps next week. While things are
currently bearish on GBP pairs, recovery would gradually or smoothly return to
the markets.

USDJPY

Dominant bias: Bearish

The Brexit votes outcome also had bearish effects on JPY pairs, and that
was exactly what brought about a bearish momentum on USDJPY, which was consolidating
in the context of a downtrend prior to that time. What happened to this market on
Friday simply brought more emphasis on the long-term bearish trend, which is
also visible on the daily and weekly charts. Although the outlook on JPY pairs is bearish,
the 700-pip decline that was witnessed on Friday would bring about a rally within
the next several trading days, as bulls seem to have reached the end of their
tether.

EURJPY

Dominant bias: Bearish

This currency trading instrument dropped 1200 pips on
Friday, thus forfeiting the 350-pip bullish gains it saw within Monday and
Thursday. The bias on 4-hour chat, daily
chart and weekly chart is bearish, but price has already encountered very
formidable demand zones on Friday. While selling pressure is present in the
market, we may witness some bullish attempt in the next few weeks.

This forecast is concluded with the quote below:

"Look at
market fluctuations as your friend rather than your enemy; profit from folly
rather than participate in it."- Warren Buffet

NB: Every trade could be
entered with a stop loss of 200 pips and a take profit of 400 pips. Only 0.5%
is risked per trade. With an account balance of $20,000, a position size of 0.1
lots would be used. The breakeven stop is set after about 70-pip profit is made.
A trailing stop of 100 pips is set after over 170 pips have been gained.
You need to use your technical analysis to know when
to enter, since you may want to trade a pair only after your entry criteria
have been met.

Disclaimer: Trading signals are provided for information
purposes only and shouldn’t be construed as trading advice.

Thursday, June 23, 2016

“If there are people in your life who do not support your
efforts to become a successful trader, avoid them. Avoid those who express
negative energy on a regular basis, and vent their hostilities towards you.
Wherever possible, terminate unhealthy emotional relation­ships that cannot be
repaired, and if necessary, do it immediately.”- Joe Ross

Name: Brevan Howard

Industry: Investment management

Products: Hedge funds

Website: Brevanhoward.com

ONE OF THE LARGEST
MACRO HEDGE FUNDS

Brevan hedge fund was co-founded in 2002 by 5 experienced
traders, although some of the founders have left the firm.

The company was headquartered in Geneva in 2010. It opened
an affiliate firm in New York in July 2012, called Brevan Howard U.S.
Investment Management LP. In June 2013, the company was reported to be the
largest European hedge fund management firm based on its total assets under
management of around $40 billion.

The company manages 11 funds and it maintains so high
standards for trading success, that some traders who were dismissed from Brevan
Howard have become “stars” at other trading companies.

Brevan Howard has donated generously to Imperial College
Business School, Alan Howard Scholarships for Energy Futures, and the ARK
Bentworth Primary Academy.

What You Need to
Know:

1.According to Wikipedia, the company received $2 billion
to manage in the global macro fund from Credit Suisse Private Bank. Under the
leadership of Brevan Howard's founding partner, assets grew to $10.5 billion in
2006. The company generated a 25% return in 2007 and returns from their global
macro fund continued to perform well during the financial crisis of 2008.

2.Alan Howard hedge fund has had many glorious years of
nice profits, but not without losing years. In some years, the returns in terms
of percentage were small and in some years, the losses were small. In some
years, the losses were big. However, the firm has been hugely successful
overall. Such is trading.

3.What are Brevan Howard investment strategies? According to founding partner, Nagi
Kawkabani, the firm's overall strategy is focusing on near-term opportunities
and establishing investment positions that are maintained for one to six
months. As a macro hedge fund the company wants to make gains from broad
economic trends and speculates on various assets including commodities and
currencies.

This piece is ended with the quote below:

“I suggest, though, that no matter what percentage you
choose, consider keeping it the same on all of your trades, because if you
don’t you in are, in effect, starting to handicap your trades. When I cover this point in my webinars some
of the attendees say to me, “I risked a
higher percentage of my account on Trade
A then Trade B because A looked better,” to which I respond ,” Why would you
enter a trade that looked less than perfect and didn’t meet all of your trade
selection criteria?” The reality of
trading, of course, is that we never know which of our individual trades will
work out. We only know that over a
series of trades we should win “X%” of the time based on our particular trade
selection methodology.”- Lee
Bohl (Source: Trade2win.com)

Tuesday, June 21, 2016

Kibo Mining stock (LSE:KIBO) has been engaged in a choppy phase for
several months, though a closer look at the market reveals some form of bullish
domination.

The price is essentially above the EMA period 50, while the current
shallow bearish correction in the market proffers an opportunity to go long
when things are on sale, and in the context of a downtrend.

As long as Kibo Mining stock does not go below the demand zone at
4.00, this bullish outlook would be rational. The price could reach the supply
zones at 7.00, 7.50 and 8.000 this year. This means the market is attractive,
though choppy.

Photo-me Internationl shares (LSE:PHTM) currently have a
false “buy” signal on them. The condition in the market is not yet ripe for
long trades, unless future developments justify it.

In the 4-hour chart, the ADX period 14 is not above the
level 20, showing a lack of momentum in the market. The DM+ is below the DM-,
meaning that bears are in control. The MACD default parameters, has its
histogram above the zero level, while its signal lines are below the zero
level.

The possibility of price going further south is higher than
the possibility of it rallying significantly. Should the MACD histogram drop
again below the level 50, a Bearish Confirmation Pattern would form in the
market. Photo-me International is expected to test the demand levels at 130.00,
125.00 and 120.00 this year.

This means that the bullish effort we saw in the last few
trading days were just opportunities to sell at higher prices.

This forecast is ended by the quote below:

“Always remember that there are people out there with the
ability to push the market around, and they will do so at every opportunity.”– Joe Ross

Monday, June 20, 2016

As it was anticipated,
the EUR/JPY dropped 460 pips last week, reaching a low of 115.49, and a high of
120.31. The upward attempt that was later seen last week could proffer an
opportunity to sell short at better prices, because the market might test the demand
zones at 117.00, 116.00 and 115.00. The demand zones at 117.00 and 116.00 were
tested last week, and they could be retested this week.

EUR/USD: This
pair is now volatile, but with choppy price movements. Bulls made some
noticeable attempt to push price forward last week; nevertheless price would
not become really bullish unless it goes above the resistance line at 1.4000,
which would require a serious buying pressure. Really, the bias on the pair is
bearish for this week – further southward movement could be seen.

USD/CHF: USD/CHF moved
essentially sideways last week, in the context of a downtrend. There is a
Bearish Confirmation Pattern in the market, and unless there is a serious
weakness in the EUR/USD, (which could help the USD/CHF effect a meaningful
rally), further bearish movement would be witnessed, when momentum returns to
the market.

GBP/USD: This pair is bearish in
mode, though price made an attempt to go upwards by 300 pips on Thursday and Friday.
There is a need for price to go upwards by another 300 pips before its mode can
turn bullish. Throughout Thursday, June 23, GBP/USD (and most other GBP pairs)
will go in one direction with little or no reversal, but there would be nothing
graver than normal. The outlook on the pair is bearish and further southward
movement could possibly be witnessed this week.

USD/JPY: This currency trading
instrument declined 300 pips last week, and later moved sideways in the last
two days of the week. There is going to be a breakout this week, which would
most probably favor bears, since the outlook on JPY pairs remains bearish. The
demand levels at 104.00 and 103.00 would be reached.

EUR/JPY: As it was anticipated,
the EUR/JPY dropped 460 pips last week, reaching a low of 115.49, and a high of
120.31. The upward attempt that was later seen last week could proffer an
opportunity to sell short at better prices, because the market might test the
demand zones at 117.00, 116.00 and 115.00. The demand zones at 117.00 and
116.00 were tested last week, and they could be retested this week.

Saturday, June 18, 2016

All
bearish pulls EURUSD experienced last week were rendered useless by bullish
effort. Price did not go above the resistance line at 1.1300 last week; nor did
it stay below the support line at 1.1150. The impasse between bulls and bears
has enforced the neutrality of the market, and unless price goes above the
resistance line at 1.1400 (causing a bullish bias), or goes below the support
line at 1.1100 (causing a bearish bias), the neutrality of price would
continue. This week, there is going to be strong moment on EURUSD, which would
most likely favor bears. This pair is quite choppy right now.

USDCHF

Dominant bias: Bearish

This
pair moved sideways last week – performing only upswings and downswings in the
context of a downtrend. The support level at 0.9550 ought to be breached to the
downside for the bearish journey to continue. However, further decline on
EURUSD would trigger a rally on the pair, which would result in a Bullish
Confirmation Pattern when price goes above the resistance level at 0.9800. A
strong buying pressure is required for this to happen.

GBPUSD

Dominant
bias: Bearish

This week, there would not be any unprecedented movements on GBP pairs
(just like Grexit caused no special movements in the markets), save strong
movements that are not more than anything that has been witnessed so far this
year. Surprise movements do not usually happen when they are anticipated. What usually
cause extremely serious movements in the markets are events that happen
unexpectedly. Likely effects of Brexit have been anticipated, as well as likely
effects of Bremain. Therefore, they would not cause any movements stronger than
what we have seen on GBP pairs this year. Throughout Thursday, June 23, GBPUSD
(and most other GBP pairs) will go in one direction with little or no reversal,
but there would be nothing graver than normal. The outlook on the pair is
bearish and further southward movement could possibly be witnessed this week.

USDJPY

Dominant bias: Bearish

Just as it was forecasted, USDJPY declined further by 300 pips last week,
going below the demand level at 104.00, before things went sideways again. Price
has dropped 550 pips since the beginning of this month, and the downtrend is
likely to continue, as price targets the demand levels at 103.50 and 103.00.

EURJPY

Dominant bias: Bearish

This is a bear market, just like most other JPY pairs. There
is a Bearish Confirmation Pattern in the market, giving a possibility of price
reaching the demand zones at 117.00, 116.00, and 115.00 this week or next. The
demand levels at 117.00 and 116.00 were tested last week, and they could be
retested this week. One thing should be noted, bearish pressure on EUR would
make it difficult for EURJPY to make any significant rally this week.

This forecast is concluded with the quote below:

“You don't have
to trade perfectly. You just have to trade profitably. Put a single trade in
perspective. It's just one trade of the many trades you will make in your
lifetime. You may lose or you may win, but the outcome of a single trade does
not matter. What matters are your overall profits across a series of trades,
not just a single trade.”– Joe Ross

Thursday, June 16, 2016

Originally, I planned to post an article titled: “Difficult Markets Produce Fine Results –
Part 2.” But I can see that the media are making noises about the coming
Brexit or Bremain, just like they did when the issue of Grexit was hot.

A referendum is being held on Thursday, June 23, 2016, to
decide whether Britain should leave or remain in the European Union.

Since the outcome of the referendum will impact the markets,
it is worthwhile to know the nature of the impact and how exactly the markets
would behave during and following the referendum.

Traders want to know what the market would do, whether it
would go up or down or simply fluctuate wildly without a directional movement.

What would the markets do? I’ll tell you what the markets
are supposed to do, and that’d be my opinion. Everybody is entitled to her/his
opinion.

If you could recall my Annual Trading Forecasts for the year
2015, it was mentioned that USDCHF would experience a large pullback in
January. That was exactly what happened.

What Would Happen
to the Markets on June 23 and After

The Brexit/Bremain issues would affect mainly GBP pairs
(Just like the SNB action of January 15, 2015, affected mainly CHF pairs). When
I mention major GBP pairs, I mean GBPUSD, GBPJPY, GBPCAD, EURGBP, GBPAUD,
GBPNZD and GBPCHF. These pairs are already trending strongly; but that is their
normal behavior. Please check historical data.

Whether Britain chooses to remain in the European Union or leave,
there would be strong movements in the markets. The movements would be stronger
in case Britain chose to leave the EU. The currency market is like a rubber
band: If it moves too far in one direction, it’d soon snap back. Accumulation
and distribution territories are present to check strong trends.

Nevertheless… No matter what the outcome of the referendum
is, there will be no unprecedented volatility in the markets.

In my recent markets forecasts, it has been mentioned that
GBP pairs would experience strong volatility this month (plus NZD pairs). This
is because GBP pairs usually move strongly in June while most other pairs
experience low volatility. Bremain/Brexit issues are only a catalyst that will
spur the usual strong movements on GBP pairs this June.

The market has a knack for going against people’s expectation.
Events that people don’t anticipate are what cause surprise moves, not events
that people anticipate. People didn’t
anticipate the unprecedented CHF pairs volatility that occurred on January 15,
2015 and there were surprise consequences. Another instance of an unexpected event
that caused surprise movements was the last major earthquake in Japan, in March
2011, which also caused nuclear fallout.

Grexit was hyped as something that might have a serious
impact on the markets. What then happened? There was nothing significant or
extraordinary, as far as the markets were concerned. Even there were far
stronger movements in the first few months and the last few months of 2015,
than when the Grexit issue was hot.

There wouldn’t be any unpredicted movements or volatility on
GBP pairs (just like Grexit caused no special movements in the markets), save
strong movements that are not more than anything that has been witnessed so far
this year.

Whether Britain exits the union or remains in it, the
markets will simply do what they’re known for. The markets will move,
presenting good money-making opportunities for astute traders. The stronger the
movement, the more money we make. After all, no money can be made in a market
that doesn’t move well (unless you’re a scalper).

It’s good to open trades based on what the markets are
doing, not based on what you think the markets would do. Yes, trending
movements would develop further – a thing that good traders are prepared for.

Final Thoughts

Please, use risk control methods in your trading, so that
adverse movements don’t have an adverse effect on your capital; while a
favorable movement would have a satisfactory effect on your capital.

As ever, it’s good to risk very small per trade. When a
position moves against you, you should be protected by a stop, having no
worries, provided your stake is also small. When a position moves in your
favor, you should make a decent profit.

However, certain traders might want to stay away from GBP
pairs till the end of the month, if that’s what you prefer.

Once again, GBP pairs
would trend strongly this month, but don’t expected any movements that would be
stronger than what we’ve already witnessed this year, not matter the outcome of
the referendum.

Do not expect any
surprises when the public are anticipating them. Surprises come when the public
don’t anticipate them.

This article is ended by the quote below:

“I‘ve seen a lot of aspiring traders over the years,
trained some of the current leading coaches/mentors, worked with some amazing
authors/hedge funds and seen a lot of people make this work. The ones that
don’t make it work are often the ones that think too much and try to reinvent
the wheel - or be / think they are - smarter than the markets. Stop trying to
hit a hole in one and start treating this like a business and look to make an
average profit on a consistent basis. This will work for you, whatever and
however you decide to do it.”–
Phil Newton (Source: Trade2win.com)

Tuesday, June 14, 2016

Legendary Investments stock (LSE:LEG) is about to perform better than
the bullish run we saw in April 2016. The market has been in a trending mode
since February 2016, though last month has been characterized by a bearish
correction.

4 EMAs are used for this analysis and they are EMAs 10, 20, 50, and
200. The color that stands for each EMA is shown at the right hand side of the
chart.

It can be seen that all the EMAs are sloping upwards, though the
price is breaking through the EMAs 10, 20, and 50, going towards the EMA 200.

This is an interesting point because there cannot be a violation of
the current bullish outlook unless there is a “Death Cross,” which means a
condition in which the price crosses the EMA 200 to the downside.

It can be said that what the price is currently doing would end up
enabling investors to enter the market at a better price when a bullish candle
does appear.

In case the price crosses the EMA 200 to the downside, the signal
would turn bearish, but right now, there appears to be a great bullish signal
on Legendary Investments, which could make the price go upwards by more than
1000 points this year.

This forecast is ended by the quote below:

“The market
spent almost all of 2015 in a neutral to down direction — that is — the market
type was mostly sideways and quiet (volatility). So far, that has pretty much
continued in 2016. These market types are about the hardest kinds in which to
make money.”
– Dr. Van Tharp

Nanoco shares (LSE:NANO) are supposed to experience a stormy
decline, following a breakout from the currency base, which is an equilibrium phase.

The market has entered an equilibrium phase since February
2016. The more the equilibrium phase holds out, the more the possibility of a
stronger breakout.

A closer look at the RSI period 14 shows that it is
currently below the level 50, depicting a rise of bears. It can also be seen
that the price is almost below the lower Trendline. Further southward movement
is possible.

When a breakout to the downside happens on Nanoco, it would
take the price towards the demand zones at 35.00 and 30.00.

This forecast is ended by the quote below:

“This is
simple yet hard for millions to grasp: the stock market is nothing more than a
collection of opinions. Two companies with similar fundamentals can have vastly
different market capitalizations, and thus unequal and divergent stock prices.
An investing strategy based on buying stocks that are relatively expensive in
the short term spells disaster more often than not. In fact, the statement can
be generalized to investing strategies based on doing just about anything in
the short term. The same goes for using the movements in that mass of opinions
to make broad statements about the economy at large.” - Greg McFarlane (Source: Trade2win.com)

Sunday, June 12, 2016

The EUR/USD has become
neutral in the short-term. May 2016 was mostly bearish, and the bullish
breakout that was witnessed on June 3 overturned that bearish bias. However,
bulls were unable to push the price further north last week, for the bullish
movement was halted at the resistance line of 1.1400, which was followed by a
150-pip bearish correction. For the bias to turn completely bearish, the price
must go below the support line at 1.1150. Otherwise we shall witness a rally
that could restore the recent bullish outlook.

EUR/USD: The
EUR/USD has become neutral in the short-term. May 2016 was mostly bearish, and
the bullish breakout that was witnessed on June 3 overturned that bearish bias.
However, bulls were unable to push the price further north last week, for the
bullish movement was halted at the resistance line of 1.1400, which was
followed by a 150-pip bearish correction. For the bias to turn completely
bearish, the price must go below the support line at 1.1150. Otherwise we shall
witness a rally that could restore the recent bullish outlook.

USD/CHF: The USD/CHF is in a
bearish mode. The price dropped by 180 pips last week, going briefly below the
support level at 0.9600, before closing above it. There is a Bearish
Confirmation Pattern in the chart, and the price is expected to continue moving
lower and lower, reaching the support levels at 0.9600, 0.9550 and 0.9500.

GBP/USD: From Monday to Tuesday,
The Cable went upwards by 250 pips, testing the distribution territory at
1.4700, before nose-diving by 400 pips in the last 3 trading days of the week.
It was mentioned that serious volatility would be witnessed on GBP pairs this month
– the catalyst being Brexit/Bremain issues. There would be great trading opportunities
here.

USD/JPY: This pair simply went
flat last week. The bullish effort that was made on Monday was not significant
enough to cause any threat to the bears. The outlook on JPY pair is bearish for
this week: and the USD/JPY is no exception. Therefore, the bears might target
the demand levels at 106.00 and 105.50.

EUR/JPY: The
bullish effort that was seen on June 6 and 7 was merely an opportunity to go
long in the context of a downtrend. The price started coming down after that,
testing the demand zone at 120.00. The demand zone could be retested again – it
could even be broken to the downside.

Saturday, June 11, 2016

For the most part of May 2016, EURUSD was
in a downtrend. On June 3, a strong bullish breakout led to a bullish signal,
but price was unable to continue moving up continuously in the following week,
which was last week. Price simply went up 50 pips, hit the resistance line at
1.1400 and then nosedived. This has forced the market into a neutral territory,
since the bullish gains of June 3 had been rendered useless by the strong
bearish correction that took place within June 9 and 10 (whereas bears cannot
claim any dominance until price goes below the resistance line at 1.1150). It
is likely that EURUSD would continue to go downwards this week, though the bias
may not turn bearish until the resistance line at 1.1150 is broken to the
downside. For the bias to turn bullish again, price needs to go above the
resistance line at 1.1350.

USDCHF

Dominant bias: Bearish

This pair decline 180 pips last week,
going briefly below the support level at 0.9600 before closing above that
support level. Since June 3, 2016, price has declined by 300 pips, reaching a
weekly low of 0.9577. The support levels at 0.9600, 0.9550 and 0.9500 are the
next targets for bears this week. Any movement above the resistance level at
0.9800 would put the bearish outlook in a precarious position.

GBPUSD

Dominant
bias: Bearish

Contrary
to expectation, Cable moved south by 460 pips last week, after testing the
distribution territory at 1.4650. Prior
to this, price moved upwards by 260 pips between Monday and Tuesday. It has
been mentioned that GBP pairs would experience strong volatility this month
(plus NZD pairs). This is because GBP pairs usually move strongly in June while
most other pairs experience low volatility. Bremain/Brexit issues are only a
catalyst that will spur the usual strong movements on GBP pairs this June. This
week, GBP might behave like it did last week: We would witness strong bullish
and bearish movements.

USDJPY

Dominant bias: Bearish

USD/JPY merely went flat throughout last week. Even the faint bullish
attempt that was seen on Monday and Tuesday meant nothing when compared to the
ongoing bearish outlook. There is a possibility that JPY pairs would trend
downwards this week, and so, USDJPY might go further south to test the demand levels
at 106.00 and 105.50.

EURJPY

Dominant bias: Bearish

Between June 6 and 7, this cross went upwards close to 170
pips, but further rally was rejected at the supply zone at 122.50. From that
zone, price went down 250 pips, to close at 120.37 on Friday. There is a
Bearish Confirmation Pattern in the market, and further decline could be
witnessed this week. Therefore, the demand zones at 120.00 and 110.00 would be
interesting to watch.

This forecast is concluded with the quote below:

“Even after all
these years, I still feel passionate about trading. I love trying to find
profit opportunities. It's a great achievement when you can beat the pros.”-
Jay McGivney

Thursday, June 9, 2016

“There’s no way to start a business without being bad at
those things. People who are good, are good because they spent ten years being
bad. Note: You have to love being incompetent in order to be competent.”– James Altucher

Name: Alfred Jones

Date of birth: September 9, 1900

Nationality: Australian, American

Occupation: Sociologist, author, financial journalist, fund
manager

STARTING THE FIRST
MODERN HEDGE FUND

Alfred was born in Australia but his parents took him to the
States when he was 4 years old. He graduated from Harvard in 1923 and then worked
as a purser on a tramp steamer.

He later joined the Foreign Service, becoming vice consul at
the U.S. embassy in Berlin during Hitler's rise to power. He earned a PhD in
sociology at Columbia University.

He worked for Fortune magazines in 1940s, also writing
articles on non-financial subjects.

After an extensive study of the markets, Alfred discovered
how they worked and decided to get his feet wet. In 1949, he started the first hedge(d) fund
with $100,000 (40% of which was his own money). The fund made a profit of 17.3%
in its first year.

The firm became successful, and the name of the partnership
was changed to A.W. Jones Company in 1970. In 1984, its fund was transformed
into a fund of funds, investing its capital in other hedge funds with different
areas of expertise and investment styles. Alfred was also involved in other
activities like Peace Corps.

He died on June 2, 1989.

What You Need to
Know:

Alfred had a
deep knowledge of the markets. You need a deep knowledge of the markets.
More importantly, the direction of the market does not matter as much as
picking the right stocks to buy and sell. Like Alfred, who started the
first hedge fund, you can bring new ideas into the world of trading.

He started what
is now part of hedge fund industry standards like choosing to take 20% of
profits as compensation, charging no fees unless profits are made, and
opening long and short positions.

Alfred and his
business method wasn’t widely known until 1966, which emphasizes that
there are many quiet-spoken market speculators nowadays who aren’t famous,
but who’re successful.

Your success
will encourage others. One source says Alfred’s hedge fund had then
outperformed the best mutual fund over the previous five years by 44
percent, despite its management-incentive fee. Mr. Alfred's hedge fund had
beaten the top performer Dreyfus Fund by 87 percent. This led to a flurry
of interest in hedge funds and within the next three years at least 130
hedge funds were started, including George Soros's Quantum Fund and
Michael Steinhardt's Steinhardt Partners. What can you learn from this?
You success will encourage others who will also become triumphant simply
because they were inspired by your success in the first place.

The road to
success is bumpy. Alfred also trod on a bumpy road. You can’t win every
month (or possibly every year), no matter how good you’re. I read that
Alfred Jones's investors lost money in only 3 of his 34 years. By
contrast, the S&P500 had 9 down years during a similar period.

Alfred’s son in
law joined his business and become Managing Partner in the following year.
Awjones.com reveals that the family tradition continues at A.W. Jones.
Alfred’s’ grandson, Robert L. Burch, IV, became a General Partner in 2003
and manages the firm with his father. Your legacy lives on after you pass
on.

Conclusion: Do
you want to become a triumphant trader and leave and enduring legacy for your
posterity? Remember that Alfred W. Jones studied the markets for many years.
More importantly, a useful advice is given below.

“[There are] parallels between trading and professional
sports. Both of them need extreme dedication and mostly rely on intuitive
skills rather than learning by the book. In both you need many hours and even
years of practicing to achieve good state of mind to be able to reach the best
possible results. There is no professional sport player achieving his success
in less than few years, the same with trading. I still remember the most cited
quote of Gann that he paper traded for 10 years before entering the real
market. He is famous with his many years of success on wall street, more than
50 years. So basically yes, we can compare professional trading with
professional sports, but the stakes are much much higher and only the sky is
the limit for the reward if you are great in the financial field. Unfortunately
very few of us have the courage and patience to learn consistently the market
for so long. Everybody is searching for fast money these days but this is not
the true path.” –– Kolyo (Source: Binaryoptionsthatsuck.com)